US Data Pushes the USD Higher [Video]

Alexander Douedari Independent Analyst

The dollar stood firm on Wednesday morning after a set of “upbeat” U.S. Retail Sales data. Experts are in disagreement as to whether yesterday’s data was really that positive or whether it hinted to slowing growth for the US economy. In any case, yesterday’s US retail sales data coupled with very thin volumes presently on the US stock markets have pushed the 3 major US indices a bit lower but not at all too much.

It seems however that the present state of things puts the Fed rather in a position to proceed with an insurance rate cut which would actually not be the beginning of an easing cycle as markets would hope. This fading hope of a very accommodative Fed is currently pricing the USD higher.

Trump Spreads New Trade Concerns

Today, US indices futures point to a muted open after US President Donald Trump made some rather concerning comments regarding the progress of the US/China trade talks. European bourses also started the day on a bearish note after Trump reignited fears over trade. Specifically, the DAX is rangebound but interestingly remained more positive yesterday despite a weak ZEW, which makes for a possibly interesting selling opportunity.

Forex Preview: Dollar Overbought

The dollar remains overbought, boosted by upbeat U.S. data. A weak EUR and an ailing GBP continue to be a no match against the greenback. The EUR, in particular, is at risk of falling a lot further with the EUR/USD currently being very close to breaking the key 1.12 support. Elsewhere, the New Zealand Dollar pushed considerably higher after an upbeat New Zealand CPI. Today the NZD continued to push higher supported by yesterday’s data and a mild recovery in oil prices.

Gold Could Push Higher

Gold prices edged lower on Wednesday, as the dollar firmed, while hopes of an interest rate cut by the Federal Reserve and global trade uncertainties kept a lid on declines. XAU/USD still held above the $1,400 level and given the apparent risk-off mood of today’s markets it could strike back up as soon as stock markets show more weakness.

Oil Recovers, BTC Dips

Elsewhere, oil prices rose after recording steep falls in the previous session. Oil prices had reacted with a strong sell on comments from Trump and Pompeo that positive headway was made between the US and Iran yesterday, which was later however refuted by Iran. It is important to keep an eye out for the crude oil stocks later this afternoon. Meanwhile, cryptos continued to decline across the board with NEO leading losses. Bitcoin dropped further heavily and is clinging on to find a bottom at 9,5k after it fell to a flat 9k even overnight.

Author

Alexander Douedari

Independent Analyst

Alexander Douedari is an Award Winning Hedge Fund Manager and Selfmade 7-Figure Trader. Now Mentor for Students all around the world.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.